Gazprom and OMV Discuss Relevant Cooperation Issues

A working meeting between Alexey Miller, Chairman of the Gazprom Management Committee, and Rainer Seele, Chairman of the Executive Board of OMV, took place in St. Petersburg today.

The parties reviewed current issues related to cooperation. It was noted that 2018 had been marked by the signing of documents that were of strategic importance for further interaction in a wide range of areas.

Particular attention at the meeting was paid to the growing demand for gas supplied by Gazprom to Austria. In the period from January 1 through January 27, 2019, gas exports totaled an estimated 1.2 bn cubic meters, an increase of 35% from the same period of last year.

Alexey Miller and Rainer Seele discussed the ongoing construction of the Nord Stream 2 gas pipeline. It was highlighted that the construction was moving on schedule. The parties stressed the importance of creating a new route for exports from Russia with a view to improving Europe’s energy security.

Background

OMV AG is Gazprom’s main partner in Austria. The companies cooperate in gas production, transportation and supplies.

Since 2017, OMV has been partnering with Gazprom in the Yuzhno-Russkoye oil, gas and condensate field development.

In June 2018, an Agreement was signed to extend until 2040 the existing contract between Gazprom Export and OMV Gas Marketing & Trading GmbH for Russian gas supplies to Austria.

In November 2018, an Amendment to the contract on gas supplies to Austria was inked. According to the document, gas deliveries to Austria would be increased by 1 billion cubic meters per year beyond the contractual amount for the entire contract period.

In October 2018, Gazprom and OMV signed the Memorandum on Strategic Cooperation.

Also in October 2018, Gazprom and OMV inked the Basic Agreement on Asset Sale.

In accordance with the document, OMV would obtain a 24.98% stake in the project for developing Blocks 4A and 5A in the Achimov formations of the Urengoyskoye field.

Nord Stream 2 is the construction project for a gas pipeline with the annual capacity of 55 billion cubic meters from Russia to Germany across the Baltic Sea.

EU economy’s future: slow but positive growthGrowth in all EU states will continue in 2019-20, though at a slower pace than before. The largest EU’s economies will grow at around 1,5-1,7%, mostly in Poland, Spain and Holland. The Baltic States’ growth will continue to be on the positive trend.